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Market splitting is one of the methods to solve the transmission congestion problem associated with the introduction of competitive electricity market and transmission access. Based on the concept of price difference among congested areas, the market splitting approach produces a solution that strongly informs market participants of congestion path. In this paper, an algorithm to solve the market splitting problem for complex networks including loop structures is proposed. The method, based on an algebraic approach, ensures a feasible optimal solution verifiable and easily understandable by the market participants. Complex networks are transformed into simple radial ones using the delta-star approach. The method was tested on large problems to evaluate the performances.

Market Split based Congestion Management for Networks with Loops